Legal Business

Burness Paull defends multimillion-dollar claim relating to legacy business

Long-running dispute reaches Court of Session

One of Scotland’s leading independent firms, Burness Paull, is defending a $210m claim relating to legacy business Paull & Williamsons, Legal Business has learned, with a procedural hearing understood to have taken place in the Court of Session – Scotland’s supreme civil court – in November.

The claim, filed by Robert Kidd, former chair and principal shareholder of oil service firm International Tubular Services (ITS) relates to a private equity investment by US firm Lime Rock Partners into ITS. Kidd, who left ITS in 2013 citing disagreements with the board, is claiming Paull & Williamsons (which was acquired by Burness in 2012) acted for both parties in the investment and used another firm, Ledingham Chalmers, as a front for the activity.

While the original value of the claim is $210m – roughly three times Burness Paull’s turnover of £53.3m – Kidd is also claiming interest at 8% over about five years. Burness Paull has instructed BTO Solicitors’ professional negligence lawyer Alan Eadie, while Levy & McRae’s head of commercial litigation, Graham Craik, is acting for Kidd. The case has been live in front of the court for 18 months, but was first filed three years ago.

A spokesperson for Burness Paull said: ‘We can confirm that a claim has been made against the firm that arises out of events concerning Paull & Williamsons. Adhering to the highest ethical and professional standards is a guiding principle of the firm. The action is being defended and it would be inappropriate to comment further on the matter at this stage.’

kathryn.mccann@legalease.co.uk